Greece’s creditors have told the government that online auctions must get up and running in 2018, with a satisfactory volume of auctions being processed through the new system in January and February, otherwise, as the European Central Bank has warned, local lenders will face the consequences in the upcoming stress tests.
Kathimerini understands that the banks have pledged that they will conduct at least 600-700 online foreclosures per month in the first couple of months of 2018, ensuring a substantial market. Bank officials note that the main objective is not just starting the online auctions – which has been postponed from one week to another – but mainly achieving a satisfactory transaction volume, so that the new tool has an impact.
After the minimum of 600-700 auctions per month in the first few months of 2018, the creditors have demanded an increase in the volume from the second half of next year, with the number of auctions seen rising to 10,000 in the last quarter of 2018, for all lenders, taking the year’s total to 18,000. That target is almost three times the number of auctions last year, which totaled 6,468, but also three times less than the figure recorded in 2008 (58,849).
Credit sector officials stress there should be a considerable increase in transaction volume, as in the last couple of years foreclosures have all but frozen, while the increase ought to be gradual to avoid a negative shock to the property market. Intense pressure on prices would have a serious effect on banks’ financial reports as it would greatly diminish the value of collaterals, forcing them to make additional provisions.
Meanwhile the Notary Association will resume its meeting postponed on Thursday due to lack of a quorum on Monday so as to decide whether they will continue or suspend their abstention from foreclosures.